Economic news from Colombia

 The rise in the CPI in September keeps inflation above 5%. Pereira, Bucaramanga, and Armenia were the hardest hit, while poor households continue to feel the greatest impact. The cost of living increased for a third consecutive month. Following the recent DANE report, September made headlines, showing a Consumer Price Index (CPI) of 5.18% annually (compared to the same month last year). The figure was 0.7 percentage points higher than forecast by the Fedesarrollo and Citi Research surveys, which placed the figure at 5.11%. The Reasons The headline inflation of 5.18% was driven by sectors with a significant impact on household spending. Restaurants and hotels (7.47%), education (7.29%), food and non-alcoholic beverages (6.21%), and healthcare (5.99%) registered variations above the national average, reflecting structural pressures on essential services and daily consumption. At the subclass level, the rebound is explained by significant increases in transportation (9.33%), fresh fr...

 BBVA sees gradual convergence in the region's economies, although the World Bank warns that without reforms and increased productivity, equilibrium will not be enough to close social gaps. Latin America is going through a phase of convergence that seems more like a truce than a victory. Amid global uncertainty, marked by geopolitical tensions and a cooling global economy, the region has managed to stabilize some of its imbalances, but growth momentum remains subdued. BBVA Research's most recent report paints a picture of "gradual macroeconomic convergence": appreciating currencies, falling risk premiums, and a slight rebound in economic activity. However, this improvement comes with caveats. The region's economies remain divided between those consolidating structural progress and those that still rely on containment measures rather than transformation. Argentina and Colombia stand out as the only major economies showing signs of acceleration compared to 2024, whi...

  The government claims it reduced the local public debt balance by COP 8.02 trillion and improved fiscal conditions, amid its seventh swap with market makers. The Ministry of Finance and Public Credit, through the General Directorate of Public Credit and National Treasury, announced the successful completion of the seventh TES swap operation for COP 43.4 trillion. How and how much are the fiscal savings? The swap generated a demand of COP 28.13 trillion in its competitive component and a demand of COP 21.14 trillion in its non-competitive component, according to the Ministry. The swap generated fiscal savings amounting to COP 1.7 trillion by 2025 due to interest, and the operation positively impacts the public debt balance, reducing it by COP 8.0 trillion. Ultimately, the nation will receive short- and long-term bonds with maturities between 2025 and 2050 in exchange for long-term bonds with maturities between 2029 and 2058.

Traders have flocked to gold throughout the year, causing a rise of more than 50%, amid expectations of, among other things, an interest rate cut in the United States, political turmoil in France, and global economic uncertainty. US and European stock markets rose, while Asian markets fell. Used in jewelry, industry, or as a reserve, the yellow metal has always represented a quintessential "safe haven" because it retains its intrinsic value. The US government shutdown is increasing anxiety among investors, as key economic data, including those related to employment, have been postponed, complicating the situation for the Federal Reserve when it comes to deciding its interest rate plans.